Legal Foundations of Nonprofit Board Service

1. Legal Foundationsof NonprofitBoard Service

2. The Appropriate Roleof Nonprofit Board Directors • Mission • Stewardship • Chief Executive • Oversight • Evaluation • Compensation

3. Directors’ Responsibilities • Due Care • Active Participation • Reasonable Inquiry • Loyalty • Conflicts of Interest • Loans to Directors • Obedience • State and Federal Law • Mission

4. Directors’ Rights • Access to Information • Access to Advisors • Right to Understand

5. Federal Regulationof Nonprofits • Internal Revenue Service • IRC regulations • Sarbanes-Oxley Provisions • Pending Legislation • Federal Trade Commission • Interstate solicitation • Grantmaking Agencies

6. Nonprofit Regulationin Oregon • Oregon Secretary of State, Corporation Division • Types of Nonprofit Corporations • Annual Report • Oregon Dept. of Justice, Charitable Activities Section • Public Benefit Corporations must register • Annual Financial Reports • Professional Fundraising • Charitable Gaming

7. Other Duties • Update governing documents • Disclose public documents • Ensure adequate financial records and controls • Safeguard assets • Observe donor restrictions • Scrutinize solicitation activities • Prohibit political activity and limit lobbying • Ensure proper employment practices

8. Recognizing Exceptional Boards • Constructive Partnership • Mission Driven • Strategic Thinking • Culture of Inquiry • Independent-Mindedness • Ethos of Transparency • Compliance with Integrity • Results Oriented • Continuous Learning • Revitalization